Foreign shops driving rent up

Update:
March, 22/2016 - 10:28

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Nguyen Hue street in downtown HCM City. — Photo thanhnien

HCM CITY (VNS) — More foreign shops such as France-based Auchan and US-based 7-Eleven convenience stores will lead to competition for rental spaces, particularly in downtown HCM City, according to a new report.

“Good positions downtown will play a very important role in attracting customers, and we see the price for rent increasing after Lunar New Year,” Võ Thị Phương Mai, Cushman & Wakefield’s retail service manager, was quoted as saying in Đầu Tư (Việt Nam Investment Review) newspaper.

According to a recent survey conducted by CBRE Việt Nam, after Tết, the retail sector is expected to grow and demand for rental positions will increase.

Prices have risen from 10-15 per cent compared to the period before Tết.

Well-known fast-food and coffee brand names like McDonald’s, KFC, Starbucks, Trung Nguyên, Phúc Long, Kichi Kichi, Seoul Garden and Món Ngon are expanding their businesses and have created pressure in the rental space, the report said.

Within a radius of 15km from downtown, prime spots for renting will become scarce, especially on major streets and the ground floors of high-rise buildings for 50-500 sq.m of rental space.

The report also said that many spaces inside trade centres remained empty because investors were waiting to rent spaces on major streets.

To meet the demand, real estate investors will offer more ground-floor spaces in high-rise buildings this year. — VNS